Purpose of the Bill

This bill aims to change how certain funds are used within Minnesota's housing development initiatives, specifically modifying expenditure provisions for the Housing Development Fund. It intends to streamline the financial operations of the Minnesota Housing Finance Agency by repealing certain allowed expenditures and reallocating resources more efficiently.

Main Provisions

1. Expenditure Modification: The bill outlines new rules for how money is allocated and spent from the Housing Development Fund. It focuses on keeping the money within specified accounts and allows for the transfer of funds between programs, but with specific restrictions.

2. Investment Earnings: Income generated from investments made with appropriated funds can be used to cover operational costs before being distributed to specific programs for their intended purposes.

3. Transfer Rules: It allows for the movement of money between different appropriated accounts within the agency as long as certain conditions are met. Specifically, funds for loan programs cannot be transferred to grant-making accounts, except in particular situations mentioned in the bill.

4. Continuity of Appropriations: Appropriations made in previous years remain valid until all funds are expended, regardless of any repeal of related statutory provisions.

Significant Changes

• Repeal of Certain Provisions: The bill repeals several statutory provisions that previously allowed the allocation of funds for specific housing initiatives, such as capacity building grants and rental housing programs. The repealed sections also included full-cycle homeownership services that provided comprehensive support to individuals aiming to own homes.

• Restrictions on Transfers: While allowing some flexibility in transferring funds, the bill imposes restrictions to ensure that funds dedicated to loan programs are not diverted to grants, except as specifically authorized.

Relevant Terms

housing development fund, Minnesota Housing Finance Agency, appropriations, expenditure provisions, investment earnings, program transfers, capacity building grants, rental housing program, full-cycle home ownership services.